As the 2024 NFL season kicks off, fans everywhere of teams that are currently 1-0 are planning the Super Bowl parade. That’s the way it goes. And with every passing week, the drama will heat up, as the divisional playoff picture becomes more clear.

There are many facets of sport that make the action more exciting with every passing week. Sports betting, in states that allow companies to operate, is certainly one major factor that makes the game of football and other sports interesting to investors. Aside from the various rankings of how much various franchises are worth, one of the best ways for individuals to involve themselves deeper in any game is to take bets on who they think will win. But as is the case with most gambling outfits, the house almost always wins.

So, for investors looking to take the other side of the sports betting world, the following three companies could be excellent bets. These are all great places to start for those looking to profit from the business that is sports.

Key Points About This Article:

• Sports betting stocks have seen explosive growth, as various new markets open up within the U.S.
• With the most recent season kicking off, here are three top sports betting stocks investors can buy to become the “house” in the world of sports betting.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

DraftKings (DKNG)

Founded in 2012, DraftKings (NASDAQ:DKNG) is likely the most prominent name in the sports betting field. Those who have placed a wager online likely have done so via DraftKings, which has a global portfolio of companies in different markets. 

Initially focused on daily fantasy sports, DraftKings expanded into online sports betting and casino gambling following a 2018 Supreme Court ruling. The company is a leader in North American sports betting and iGaming, DraftKings shares a 70% revenue market share with FanDuel. The company serves 40% of Canadians and operates in 25 U.S. states for sports betting and seven states for iGaming, also offering online gaming items and a NFT marketplace.

DraftKings reported strong Q2 2024 earnings per share of $0.22. These results surpassing expectations, though the company’s $1.1 billion revenue (which was up 26.2% year-over-year) did slightly missed forecasts. The stock dropped nearly 4% following its report on these mixed numbers, as well as some acquisition costs and tax changes. That said, the company raised its revenue guidance, and analysts believe the company has strong growth potential over the long-term.

As one of the leaders in this space, I think that stance makes sense. For investors looking to buy the leader in this market, DKNG stock is a great place to start your analysis.

MGM Resorts International (MGM)

MGM Resorts International (NYSE:MGM) is best-known as a major Las Vegas casino operator. However, the company does have a strong and growing online gaming business.

MGM reported record revenue of $4.4 billion for Q1, a 13% year-over-year increase. These results were mainly driven by strong Las Vegas performance and MGM China’s growth. That said, the company’s Q2 results were also strong, with revenue hitting $4.3 billion, up 10% from the previous year. Importantly, many investors are focused on the company’s international expansion, which is expected to continue to support its resilience amid what could be a rocky economic environment moving forward.

MGM Resorts’ partnership with Marriott expanded its market reach, adding 16 MGM properties to the Marriott Bonvoy program, boosting bookings and loyalty benefits. This alliance has improved MGM’s occupancy and revenue metrics considerably, and paving the way for the company to continue repurchasing its own shares. Notably, MGM has reduced its share count by more than 35% since 2021. As far as capital return is concerned, this is a stock to watch on this basis alone. 

If the company can continue to grow its presence in the online sports betting business, that’s another catalyst that could drive long-term performance. To me, this is a more stable option on the list of sports betting stocks, albeit with likely less upside than a name like DraftKings.

Caesars Entertainment (CZR)

Caesars Entertainment (NASDAQ:CZR), known for its Caesars Palace Las Vegas casino, now operates over 50 casinos nationwide after its Eldorado acquisition and the purchase of British gambling firm William Hill. Renamed Caesars Sportsbook, the company’s online sportsbook has gained a double-digit market share through aggressive national advertising. Despite this fact, the company continues to face significant losses. Part of these recent losses can be attributed to setbacks, but it’s also worth noting that the company’s targeted advertising strategies haven’t been cheap, and rolling out this business has been expensive thus far.

That said, if Caesars can continue to roll out its online gaming business, and it grows market share relative to its peers, there’s a lot to like about the long-term impacts of such a business. Online sports betting and gambling is less real estate intensive, and allows for greater operating leverage over time.

The company’s recent results have shown improvements, and Ceasars is now operating in 26 states that allow online mobile betting. This is a stock I think is perhaps the highest-risk, highest-upside pick on this list, but is one I’d consider on serious dips moving forward.

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